CONCERNS ABOUT FX SCARCITY FOR TRADE FINANCE ARE MENTIONED BY ACTN

The Association of Corporate Treasurers of Nigeria (ACTN) has voiced its concerns over the chronic scarcity of foreign currency in the country, which is hindering its members' ability to obtain the cash needed to grow their businesses. Adeyinka Ogunnubi, the new president of ACTN, addressed the issue at the former president's handover ceremony and strategy session of the association, emphasizing that the lack of liquidity in the market is a major challenge.

Ogunnubi highlighted that the majority of ACTN's members do not have access to trade financing and that obtaining trade finance from banks is becoming increasingly difficult. He claims that the decline in Nigeria's risk ratings and the scarcity of foreign currency are the causes of the shortage of trade finance. He also pointed out that the federal government needs to address policy issues to simplify the process of obtaining trade finance, paying taxes, and conducting operations.

According to Ogunnubi, resolving the issues around the multiplicity of foreign exchange and subsidies is crucial. He believes that Nigeria needs one stable exchange rate to promote both domestic and foreign direct investment and to guarantee an environment that is conducive to economic growth. He also urged the incoming administration to prioritize the country's high interest rates and cash scarcity, making it their top priorities.

“We think the government will recognize how important the problem is. As soon as they are appointed, ministers must be chosen, and the economy will be their top concern. We anticipate increased surveillance of the foreign exchange sector, particularly the exchange rate. We predict that the new administration will give the issue of exchange rate multiplicity top importance,” he said.

We believe that the issue of exchange rate multiplicity will be the next administration's first task. A single exchange rate is necessary in order to promote commerce, investment, and a bigger influx of foreign currency into this economy. He continued that the regulatory environment must also be very friendly.

Ogunnubi also noted that the issue of exchange rate multiplicity will be the next administration's first task. He stressed that a single exchange rate is necessary to promote commerce, investment, and a bigger influx of foreign currency into the economy. He believes that the regulatory environment must also be very friendly.

The ACTN is working on developing strategies to promote growth and provide its members with a forum to express their opinions. Ogunnubi's goal is to enhance sustainability and build on the association's achievements. “We are doing a lot of training and advocacy for them because our members are keen on making sure they get really good value in terms of the appropriate degree of education and information that boosts their professionalism and effectiveness as treasury officers,” he added.

In conclusion, Ogunnubi believes that the government must recognize the importance of the foreign currency scarcity and prioritize it. He is optimistic that the new administration will give the issue of exchange rate multiplicity top priority and implement policies to promote economic growth and stability. A stable exchange rate is essential to promote both domestic and foreign investment and guarantee an environment that is conducive to economic growth.